February 15, 2007

Global Monitor (February 2007)

AESWapiti taps Sargent & Lundy

An AES Corp. subsidiary has picked Sargent & Lundy to provide engineering services for the early stages of a 184-MW circulating fluidized bed project in northeastern British Columbia. AES won a competition, and a 30-year power supply contract, from BC Hydro last fall.

The $450 million AESWapiti project will be fueled 80% by coal and 20% by wood waste. The coal will come from a new surface mine nearby to be developed by Hillsborough Resources Ltd., a Canadian firm. The project includes a 22-mile, 230-kV transmission line.

Chicago-based Sargent & Lundy has been providing engineering, energy business consulting, and project services for power projects for 115 years. AES is one of the world's largest global power providers, with 2005 revenues of $15 billion. In addition to many non-utility generation projects such as AESWapiti, the company owns 14 regulated utilities around the world.

The AESWapiti project is currently under provincial review, including British Columbia Utilities Commission analysis of the power-purchase agreement. AES says it expects construction to start late this year and that the plant will be put into service in 2010.

Correction

On p. 22 of the November/December 2006 issue, we incorrectly attributed the source of this photograph from the Gulf Coast Power Association meeting. The image was graciously provided by Barbara Schott. POWER regrets the error.